JJ Kinahan, Chief Market Strategist at IG North America, shared his surprise over the bullish activity surrounding Meta Platforms Inc. META in recent weeks.
What Happened: Speaking on CNBC's Last Call on Wednesday, Kinahan noted that retail investors have not missed out on the Apple rally since retail investing is a long-term process.
He added that around 60% and 66% of Apple and Nvidia’s activity, respectively, have been bullish over the past 2 weeks. "But the winner in the clubhouse, in terms of the Magnificent 7, is Meta. 72% of Meta's activity over the last 2 weeks has been bullish," highlighting retail investors' buying trends.
Kinahan expressed his astonishment at the level of bullish sentiment, stating, “I find that really surprising and something to watch.”
Why It Matters: The comment comes amid speculation that Meta might announce a stock split, driven by its significant stock price surge and ongoing shareholder value initiatives.
Meta’s stock has seen a remarkable increase, climbing over 450% from its 2022 lows. This surge has been fueled by growing interest in artificial intelligence, strategic buybacks, and the introduction of a new dividend. The company’s stock is currently trading above $500 per share.
Meta remains the only company among the “Magnificent Seven” that has not yet split its shares. The company’s initiatives to enhance shareholder value, including AI ad targeting for WhatsApp and integrating AI tools for ads on Instagram and Facebook, have contributed to its stock’s impressive performance.
However, there are concerns about Meta’s financial sustainability. BMO Capital analyst Brian Pitz recently highlighted the rising risk of free-cash-flow burn as the company evolves its creator payout structures. Pitz reiterated a Market Perform rating on Meta’s shares, with a price target of $450.
Price Action: Meta’s stock closed at $508.84 on Wednesday, with an after-hours price of $507.21, according to Benzinga Pro. The stock’s 52-week high stands at $531.4899, while the 52-week low is $261.7.
Image made via photos on Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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